Amazon Prime Video vs. Netflix: Video Streaming Services Compared

Nov 20, 2016

Amazon is preparing for the global rollout of its video streaming service. The company will compete against leading streaming services such as Netflix and Hulu. It plans to roll out the service in 200 countries and territories. Currently, Amazon Prime video is available just in U.S., U.K., Germany Austria and Japan, with an Indian launch coming out soon.

Amazon’s service will compete with Netflix, which already has a worldwide presence.

Both companies have different approaches to video streaming internationally. Netflix purchases streaming rights to shows that have a common connect globally, such as “How I Met Your Mother.”

Amazon, on the other hand, is working on creating local content for each market. Amazon’s streaming model therefore, requires more investment than Netflix. The Wall Street Journal estimates that Amazon would be spending anywhere from $4 billion-$5 billion on video outlays. This gives the company ownership of the content.

Netflix definitely has a first mover advantage since it moved to markets such as India earlier. But it has consciously chosen against the regional presence that Amazon is building on.

“There’s no point in us trying to out-Bollywood Bollywood at this point,” Netflix Chief Executive Reed Hastings told the Wall StreetJournal.

Amazon’s approach is underlined by Amazon Studios CEO Roy Price, “You can have a global service, but there are no global customers, there are only local customers.”

Both streaming services can be used across a variety of devices.

Netflix currently has a consumer base of 87 million subscribers. The exact number of Amazon Prime Video users is not yet available, but the Prime service has 60 million subscribers. In the U.S., Amazon Prime offers access to 10,000 videos for $79 an year while Netflix charges $96 per year and offers both DVDs and online streaming content.